In accordance with Section 8-215 of the Connecticut General Statutes (CGS) and Section 32-12 of the Hartford Municipal Code, the City of Hartford is authorized to enter into contracts for the abatement of real property taxes for residential properties when such housing is to be occupied solely by low or moderate-income persons or families as defined in Section 8-202 of the Connecticut General Statutes or elderly and disabled.
A tax abatement agreement is a contractual agreement between the City of Hartford and the owner of a rental property that fixes taxes on an annual basis at a rate less than the full tax amount. Typically, the term of the abatement is ten (10) years and may be renewed by the contracted property with City approval after a minimum of a one year lapse between abatements, in which case the owner is expected to pay full tax.
The housing may be newly created, or existing. Existing properties are required to invest a minimum of $3,000 per one-bedroom unit and $6,000 per family unit, two- bedroom unit or larger, within 3 years of the effective date of the abatement agreement and comply with the applicable sections of Hartford’s Affirmative Action Plan (HAAP) when awarding contracts for these improvements. If renovations are not required, the owner must submit to the Division of Housing proof that all major systems including but not limited to structural, mechanical and electrical systems are in good working condition and the life expectancy exceeds the term of the abatement.
Any existing property owner, nonprofit developer, or for-profit developer who intends to newly develop/rehabilitate rental property can apply for tax abatement providing it meets or will meet the requirements as described in paragraph one. Persons, organizations or developers who do not presently own the property, but can demonstrate site control can apply for tax abatement – but cannot enter into such an agreement until such time as they have taken title to the property.
Abatements shall be used for one or more of the following purposes:
Such abatement shall terminate at any time when such housing is not solely for low- or moderate-income persons or families or when such housing ceases to fulfill the purposes as stated in paragraph one (1).
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